Before you sign up to Making Tax Digital (and there is still time) you will need software to keep digital records and submit returns.
All VAT registered businesses will need to file their VAT Return after the end of June 2019 through MTD software – the old method of accessing and posting your VAT return manually (via the HMRC portal) will then no longer be possible. It is important therefore that you choose a software that is MTD compliant and it’s probably a good opportunity to review your current bookkeeping procedure and establish what system will now be best suited to you going forward.
All bookkeeping data will need to be manually entered on the MTD accounting software so you will also need to decide who is going to undertake this work especially if you currently undertake the bookkeeping personally. The need to keep this up to date will be a standard requirement and one of the main reasons HMRC have introduced MTD.
It would be advisable to discuss which MTD software is most suitable for your business with an accountant, which there are several (Sage, QuickBooks, Xero, KashFlow to name but a few which we are very familiar with). They can help bespoke this to your profession and can also undertake the bookkeeping and VAT submissions should you wish.
We also have our own bespoke online bookkeeping software - LJS Books, which is fully MTD compliant.
For more information on Making Tax Digital see our other blogs: